Many people looking to set up a new Ltd Company of their own struggle in knowing how to go about doing so. Advice from all directions starts to come at you and it’s hard to understand the correct procedure or know if setting up a Ltd Company in the UK would be the best move for you. In reality, the facts of a basic company set up are very straight forward. In order to set up a brand new Ltd Company it must always be approved through Companies House, as any Ltd Company must be accepted by the government. Companies House is ran solely by the government. Any person wishing to set up a Ltd company may go directly to Companies House or use a company formations agent to do this on their behalf. For the time being, I’ll discuss the necessary route taken if one were looking to set up their own Ltd Company directly.
Firstly, you must first think of a name which you would like to call your company, this could be any name of your choice, but you can only register that name providing nobody else has registered it beforehand. Only one Company name may be on the index at any one time. You can check your name is available by visiting their website and then once you have decided on an original name you may proceed with your application.
The first form that needs to be completed is the IN01 form, signed by each director. You may be the only director of your company should you so wish or you can have a maximum of four directors for any one company at a time. (Any director must be aged 16 or over). It used to be compulsory to have a company secretary, but this rule was abolished in 2009 and now having a company secretary is to the directors discretion.
This form will ask for personal attributes and details of the directors, including the registered office address of their new company. The registered office address must be a UK address but there is no reason why a director could not be resident outside of the UK. You must then go about forming your Memorandum and Articles of Association. These are the official documents which contain all of the relevant details about your new company. A model of these can be found on the Companies House website or alternatively you may purchase them from a legal stationers or even a formation agent.
After posting these necessary details to Companies House the will process you application (there is a charge for this – currently standing at £20.00). They will then be able to send you a signed certificate of incorporation. There is a second charge for this which varies on which time service you opt for. Once your certificate is issued to you, your company will be officially ready to trade. You can use the above documents as proof of your company which will be essential when opening a business bank account linking to your new Ltd company name.